Are you thinking of buying a home in the near future? If so, you’re probably wondering what kind of loan to get. Here are the top 5 loans that borrowers used the most in 2022, according to a recent survey.
FHA loans – these are government-insured loans that allow for down payments as low as 3.5%.
FHA loans are an amazing option for those who don’t have a lot of cash to put down on a new home. Not only do FHA loans allow you to purchase a home without having to put tens- or hundreds of thousands down, they are also government-insured, making them one of the safest and most secure options out there. FHA brokers are excellent resources – they can provide detailed information on FHA loan requirements and pricing, as well as help you find the best loan that meets your individual needs. Whether you’re a first-time home buyer or lifelong real estate investor, FHA loans may be precisely what you need to get in your new property quickly, easily and with minimal stress.
VA loans – these are available to veterans and active duty military personnel and offer 100% financing.
VA loans offer a huge financial benefit to veterans, active-duty military personnel, and their families. VA loans are provided through VA-approved lenders who provide up to 100% financing for qualifying individuals with low closing costs. VA loans can be used to purchase a home, refinance an existing loan, or even secure financing for building a home. With such plentiful perks, VA home loans are some of the best options out there for veterans and active-duty military personnel.
Conventional loans – these typically require a down payment of 3-20%, but offer lower interest rates than other loan types.
Conventional loans are great for those who want to pay less in the long run. Conventional loans generally require a down payment of 3-20%, however, this initial investment can often result in lower interest rates than with other loan types. This makes Conventional loans an incredibly attractive option to many who want to save money over time on their monthly payments. While having to put forward a larger initial payment may feel challenging to some, it’s simply the cost of getting a better deal on the loan overall and should be seriously considered when shopping around for lender options.
Adjustable-rate mortgages (ARMs) – these have an initial fixed interest rate for a period of time, after which the rate adjusts annually.
Adjustable-rate mortgages (ARMs) can provide a lot of benefits for borrowers, depending on the situation. ARMs are unique in that they have an initial fixed rate for a certain period of time and then adjust annually thereafter. VA loans usually have an adjustable interest rate and they may carry lower fees than other loans on the market. It’s always wise to consult with a qualified loan officer if you are considering this kind of loan so you can get an idea of what might be the best option for your particular financial goals. With ARM loans, however, it’s important to keep in mind that rates can fluctuate over time, making budgeting somewhat more complicated down the road. Due diligence is key when it comes to this type of mortgage product.
Home equity lines of credit (HELOCs) – these allow you to borrow against the equity in your home and can be used for things like home improvements or major purchases.
HELOCs can be a great way to access capital for those big home improvement projects you’ve been putting off. HELOCs are mortgages taken out against the equity in your home meaning you can borrow money up to a certain limit based on how much you put down originally and what the current market value of your property is. Additionally, HELOCs are usually more flexible than other mortgages with smaller payments due monthly and allowing you to draw and repay funds multiple times if needed. Before applying for one, however, it’s important to look into HELOC rates from different loan officers and find the one that fits within your budget. Your financial future depends on making smart decisions about these things now – so don’t hesitate!
After exploring the various loan options available to you, it’s time to decide which loan best fits your needs. Whether you need a lower down payment with an FHA loan or are looking for 100% financing with a VA loan, there is an option that can work for you. Don’t forget to consider conventional loans, adjustable-rate mortgages, and home equity lines of credit when considering which route best meets your needs. It’s important to do some research and understand the details of each of these options in order to make an informed decision when selecting the best one for you. For further assistance and guidance regarding your mortgage options, be sure to reach out to a loan officer today who can help guide you through the process. With their experience and knowledge, they can assist and advise on the best strategy available for your financial situation.